Friday, January 04, 2008

Protect your life with insurance

Nobody knows what will happen. Indonesian proverb says that "prepare your umbrella prior to rain" means that it is better to prepare everything before something happens. I did have bad experience. When my sister was sick, she didn't join any insurance and she had to cover all the expenses by herself. Then I finally come to my decision to join an insurance. And I really feel the advantage of joining it because my medical expenses were fully covered by the insurance when I was hospitalized last month. Unfortunately, the willingness to join such thing is not really high especially in Indonesia owing to the limited information on insurance acquired by society.
Basically, there are two types of insurance, i.e. term and whole.
Term is an insurance type which has a period of time such as 20 years, 25 years and so on. So if you choose 20 years for your insurance's term period, it means that you need to pay premium within the period. And any accident, injury or death within this period will be covered by insurance. But if you have the injury, accident or death after this particular period, you or your beneficiary will get nothing.
Whole insurance itself gives us whole life protection. So no expiration period if you choose this type of insurance. If you are in your emergency situation, you can also cash in your premium. And if you pass away, your beneficiary will receive a fund from your policy. And as it is whole life protection, the rate for whole insurance is inevitably higher that whole insurance rate. One more thing, health risky people such as smoker needs to pay higher rate rather than the non-smoker one if they want to join the insurance.
Now, this is the time for you to decide which type suits to you because both types have their own advantages and disadvantages. Or if you haven't joined any insurance yet, now is the time to start joining the insurance. Good Luck..!!

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